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Below Quote On Auto firms By Ashwin Patil, Senior Research Analyst at Geojit Financial Services

"The quarter ended September witnessed a good growth in volumes for the auto industry across sectors except for exports in the two wheelers space which depend on Africa, where currency depreciation and resulted slump in retail demand played the spoilsport. In the domestic markets, the quarter was strong on good monsoons (except for some eastern states), higher demand for new launches especially in the SUV space and supply side concerns easing. There was also a pick-up in rural demand which helped two wheelers. Even CVs witnessed a sequential demand growth on revival in the economy. The quarter also witnessed a slurry of price hikes which got absorbed well on the back of higher demand observed after two years of lackluster demand during the pandemic times. Particularly for companies like Maruti and M&M which saw meaningful high demand launches should benefit more than others as operating leverage should come into play. Lower commodity prices and improving product mix also should help margin growth. Some positive impact of commodity price softening should be visible in Q2, but more impact to be seen in Q3 due to lag effect. We therefore expect a strong Q2 for the automobile industry"